Log Cabin Appraisal And FHA Lending Issues

[CANative]

(C)Non-Standard House Styles

(1) Definition

Non-Standard House Style refers to unique Properties in the market area,
including log houses, earth sheltered housing, dome houses, houses with lower
than normal ceiling heights, and other houses that in the Appraiser’s professional
opinion, are unique.

(2) Required Analysis and Reporting

The Appraiser must provide a comment that the non-standard house style appears
structurally sound and readily marketable and must apply appropriate techniques
for analysis and evaluation. In order for such a Property to be fully marketable,
the Appraiser must demonstrate that it is located in an area of other similar types
of construction and blend in with the landscape.

The Appraiser may require additional education, experience, or assistance for
these types of Properties.

 

[CANative]

and, with the help of taxpayers, can help buyers afford to buy a home with the nominal 3.5% down payment.

How are taxpayers helping?

 

[Terrel L. Shields]

How are taxpayers helping?

They insure the loan don't they?

 

[CANative]

They insure the loan don't they?

No. The fund is created and maintained by MI payments made by the borrowers. FHA is not a lender. It's an insurance program.

 

[Terrel L. Shields]

So all the employees of FHA are paid by the fund...and not the taxpayer?

In fact, FHA cost the taxpayers about $150 billion annually.

 

[CANative]

So all the employees of FHA are paid by the fund...and not the taxpayer?

C'mon Ter. Don't be silly.

 

[Terrel L. Shields]

See my edit above. $150 Billion ain't chicken feed. Google it up yourself

 

[CANative]

See my edit above. $150 Billion ain't chicken feed. Google it up yourself

Serial nonsense now? FHA has a statutory requirement to maintain a 2% reserve and when it dipped below that during the time when FHA was the only game in town and kept the industry alive money was transferred from one ledger to another. The fund quickly recovered and this "bailout money" was never used. It's still there.

http://portal.HUD.gov/hudportal/HUD?src=/program_offices/housing/fhahistory

How is FHA funded?

FHA is the only government agency that operates entirely from its self-generated income and costs the taxpayers nothing. The proceeds from the mortgage insurance paid by the homeowners are captured in an account that is used to operate the program entirely. FHA provides a huge economic stimulation to the country in the form of home and community development, which trickles down to local communities in the form of jobs, building suppliers, tax bases, schools, and other forms of revenue.

 

[Terrel L. Shields]

http://www.heritage.org/research/re...housing-administration-what-record-of-success

Abstract

Over its more than 80 years of existence, the Federal Housing Administration (FHA) has contributed to the long-run expansion in federal guaranteed mortgage debt in the U.S. financial system, increasing financial risk to both homeowners and taxpayers. Despite various reform initiatives since the 1930s, the FHA has consistently had trouble meeting safety and soundness guidelines, undermined the stability of the housing market, and in recent years required several billion dollars to cover losses. In return, the FHA’s mortgage insurance programs have had minimal impact on homeownership rates,...

Congress has treated the FHA single-family mortgage insurance program as an on-budget taxpayer subsidy. U.S. taxpayers are obligated to cover any shortfalls in the MMIF with reserves in a capital reserve account

Historically, the FHA program has not needed to draw appropriations to cover annual deficits, but in recent years, the capital reserve account has been too low to cover the deficit in the MMIF program.[26] The MMIF subsidy cost estimate is sensitive to the choice of accounting methodology. Crucially, the FCRA accrual method significantly understates the costs of these insurance guarantee subsidies in the FHA single-family mortgage insurance practice.[27] In fact, between 1992 and 2012, there was a $60 billion difference between the accounting method required under the FCRA and a method that would more appropriately reflect market risk.​

 

[CANative]

So now you're adjusting your cost from $160B to $60B?